The top five Canadian real estate markets to watch in 2020 are Vancouver, Toronto, Ottawa, Halifax, and Montreal, according to Emerging Trends in Real Estate® 2020.
Vancouver’s office and industrial real estate are doing particularly well. The office sector is being buoyed by “a healthy job market and strong absorption by tenants in the technology sector,” the report notes. These strong prospects exist despite moderating economic growth and an expected decline in total housing starts.
Toronto’s strength is fueled in part by immigration that is making it one of the fastest-growing cities in North America, the report says. But housing affordability is a significant concern.
Ottawa’s population is growing, thanks in part to migration of Canadians searching for more affordable housing. However, affordability is decreasing due in part to shortages of construction labor and available land.
Halifax has an economy that is on “a steady upward climb,” the report says. Economic growth is expected to hit 2.6 percent in 2020, following 2 percent growth last year. Strong immigration is boosting demand for homes, especially purpose-built rental and single-family housing.
Montreal benefits from strong markets for multifamily housing and senior housing, as well as industrial real estate. A growing tech sector is boosting space absorption in the office sector. However, rising construction and labor costs are a source of concern going into 2020.
By sector, top prospects for 2020 are expected to be logistics facilities and multifamily housing, particularly in Toronto, Vancouver, and Montreal.